Apollo Defence Industries
Private Limited, subsidiary of Apollo Micro Systems Ltd. has signed a share
purchase agreement to acquire full ownership of IDL Explosives Ltd, in an
all-cash transaction.
IDL Explosives is a part of Hinduja Group-one of the largest
diversified transnational conglomerates with investments across several sectors
and a presence in over a 100 countries. IDL Explosives is a well-established
manufacturer of full range of packaged and bulk explosives specifically
engineered for mining and infrastructure projects. Moreover it also offers an
extensive range of cartridge explosives.
The company had posted a
turnover of ₹623 crore in FY24 and holds a net worth of ₹10 crore. Over the past
three years, its revenues have seen major growth from ₹395.38 crore in FY22.
This purchase involves
78.65 lakh equity shares at ₹136.04 each amounting to ₹107 crore. Once
acquisition completed, Apollo Defence will own 100% of IDL Explosives. This
acquisition is a key step towards becoming a Tier-I Original Equipment
Manufacturer (OEM) for weapon systems. It strengthens Apollo Defence’s ability
to offer integrated defence solutions, combining design, electronics,
platforms, and now explosives enabling it to offer a broader portfolio of
systems across artillery, missile, and high-impact weapon domains.
B Karunakar Reddy, Managing
Director of Apollo Micro Systems Ltd., described the deal as a landmark moment
for the group’s defence ambitions.
“Apollo Group is proud to
announce a significant enhancement to its portfolio through a landmark
alignment with India's first explosive company with a distinguished legacy of
over 64 years. This acquisition opens up new routes towards vertical
integration and full-spectrum capability enablement, allowing AMS to offer
end-to-end solutions across the entire weapon system lifecycle, from
electronics and arming mechanisms to complete munitions and integrated
platforms. Together we are poised to unleash the next chapter in the Spirit of
Atmanirbhar Bharat, serving our great nation with innovation, strength &
pride.”
The explosive market size
is expected to see strong growth in the next few years. It will grow to $9.37
billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The surge in
government spending on the defense sectors in various countries including USA,
China, India, Russia, UK and France are projected to be a major driver for the
growth of the explosive market during the period. Further opportunities are going
to emerge within the explosives market proving that this acquisition is a
golden goose for Apollo Micro Systems.
